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1. The COVID-19 crisis has led to unprecedented fiscal measures. Use the IS-LM curves as well...

1. The COVID-19 crisis has led to unprecedented fiscal measures. Use the IS-LM curves as well as the AD-AS curves to show the impacts of Congress and President Trump’s stimulus relief actions. Be sure to label all axes and curves. In one or more paragraphs explain what should happen when we assume the MPC is 0.8 and both spending and tax measures are taken to heal the economy. Also, discuss the impact on all variables and economic agents. Be sure to indicate the direction of movement for all variables. (30 points)

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Rahul Sunny answered 2 years ago
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